By The Halifax house price index for September has just been released and can be seen here.
For the September 2024 House Price Index, the data indicates a mixed picture across the UK:
- England: The average house price was £306,000 in July 2024, which is a 1.6% increase compared to the previous year, although this growth rate was slower than the 2.4% recorded in June.
- Wales: The average house price stood at £218,000 in July, with an annual growth of 2.0%.
- Scotland: House prices rose more sharply, with the average reaching £199,000, reflecting a 6.0% increase compared to the previous year.
- Northern Ireland: The average house price reached £185,000 in Q2 2024, showing a 6.4% rise year-on-year.
London saw a slight decline in house prices with a 0.4% drop annually up to July, while the North East of England saw the highest price inflation, at 3.8% (Office for National Statistics)
For the rental market, prices continue to rise, with the average rent across Great Britain at £1,286 in August 2024, an 8.4% increase from the previous year (Office for National Statistics).
Industry comments
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “Given the high costs of living, stamp duty and mortgages, it’s surprising that the housing market is holding up as well as it is, but in London in particular this is down to is limited supply coupled with plenty of demand.
“There is more stock and fewer applicants but the swing is unlikely to continue to put significant upwards pressure on prices. That would require a considerable easing of mortgage rates and an influx of new buyers.
“Healthy prices are being achieved on plenty of properties, and many are achieving asking price and even over, if the property is particularly desirable.
“Sellers who are motivated should not wait for their properties to go stale but be proactive and take advice from their agent as to what the asking price should be.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Lenders continue to reduce their mortgage rates, which is encouraging buyers to make their move. The Bank of England Governor’s comments about a more aggressive approach to rate setting should feed through to even lower mortgage pricing.
“Several lenders repriced downwards last week, including HSBC, NatWest, Barclays and Santander. Two-year fixes are now available from 3.84 per cent while the cheapest five-year fix is pegged at 3.68 per cent, which will prove to be more palatable for borrowers than some of the higher rates they have been paying recently.
“This ongoing rate war among lenders is great news for borrowers as there are some really compelling deals being launched, which will go some way to helping affordability.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “The housing market has proved remarkably resilient over recent weeks with appraisals, listings, viewings and sales agreed in our offices above last autumn’s levels.
“Confidence is key. The recent reduction in the Bank of England base rate, with expectations of more to come – perhaps even increasingly aggressively according to its Governor – is supporting the uplift in activity.
“However, lingering concerns about a ‘painful’ budget round the corner, particularly impacting the higher end of the market, as well as improving property and mortgage choice, is keeping a lid on higher prices.”
Tomer Aboody, director of specialist lender MT Finance, says: “Another strong month for the housing market with this level of growth is further indication of growing confidence, although it could also be seen as recovery due to the static, slow market in 2023, where prices and transactions were down.
“We are now seeing the fruits of a better economy and lower rates, with mortgage rates much more affordable than this time last year.
“With the October Budget looming, we hope that the trend continues but many fear what Rachel Reeves might bring.”
Daniel Austin, CEO and co-founder at ASK Partners, said: “We are continuing to see a consistent month-on-month rise in house prices, which signals a potential upward trend for the remainder of the year. The market is showing strong signs of resilience, even amid broader uncertainties. Much anticipation surrounds Labour’s plans to stimulate the housing sector, particularly regarding the construction of new homes and unlocking the planning system. If effective initiatives are announced in the coming months, they could provide the market with an additional boost, driving further growth and confidence in the sector.
“In the property investment world, rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. In the realm of commercial real estate, we have seen values hit the bottom and confidence return. The market has picked up with opportunistic acquisitions of prime properties in prime locations.
“As a debt provider, we hope to support well-capitalised borrowers who understand their product and are looking at the best sites in prime locations with potential to add to their asset value. Following this strategy, we aim to bolster developers’ initiatives with the flexible underwriting approach that is necessary for navigating a changing market. This will enable us to continue to offer opportunities for the growing number of private individuals opting to invest in property debt.”
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